You may be feeling as though marketing is the easiest line item in your budget report to slash - but you shouldn't.
Cutting your marketing budget can hurt your business long-term, even when it seems it might help slightly in the immediate future.
To ensure that your business can continue serving its customers, you must consider a few key points.
Here are several reasons to reconsider reducing your marketing budget in a recession.
1 - Your competitors won't.
You may consider cutting your marketing budget, but if your competitors don’t - where does that leave you?
When you reduce your marketing budget, you decrease how and how often your customers see you — allowing your competitor to move in and take your business.
2 - Your marketing team can help your customers support you.
The return on investment for your marketing strategy is still valid during a recession.
While things are “normal,” your strategy is to drive sales and build relationships; however, during a recession, you are more focused on the relationship-building side of things and can keep your customers invested in your success.
They love you as much as you love them, and they don’t want to see your business struggle.
Your marketing team can help you show the right amount of vulnerability and transparency, while still sending the message that you are here to help.
3 - Marketing protects you and your brand.
Clients often think about marketing as advertising, but it’s so much more.
Your marketing team is telling your brand’s story, and that story must be shaped to align with the social climate —so as to not be insensitive or offensive.
Using COVID-19 as an example, companies needed to quickly shift their messaging strategies to be sensitive and empathetic.
Having a team on your side that can help shift and shape your message allows you to support your audience while keeping your brand top of mind.
4 - Don't abandon your customers.
Your marketing strategy strengthens your relationship with your audience.
A reduction in your budget can leave your customers wondering where you went—or worse if your business is in jeopardy of shutting down.
You will, of course, be there for your audience in a different way during a recession. Your messaging will focus on how you’re taking care of customers as the tides change.
Marketing can tell your audience what you’re doing to keep their best interests in mind, strengthening their trust in your brand.
5 - The struggle to bounce back.
If you reduce your marketing efforts, it leaves you in a difficult position when you’re ready to bounce back.
You’ve spent a great deal of time and money growing your brand’s reach.
Rather than scaling back, discuss a strategy with your marketing team to find ways to keep your reach consistent.
The Conclusion
Before you decide on your budget, discuss all the options with your marketing team.
They can likely work with you to achieve your goals, even with necessary budget accommodations.
Your relationship with your marketing team should be transparent — they want to see you succeed and will do everything they can to make that happen.
Here at Ocular Media, our award-winning team bring a wealth of experience, knowledge and skill in marketing and digital services.
Contact us today to receive a free marketing analysis and discover more about our services.